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Article: Multistate voluntary disclosures: clearing up state tax liabilities. (Multistate Tax Commission's National Nexus Program)
- Article from:
- The National Public Accountant
- Article date:
- August 1, 1998
- Author:
CopyrightCOPYRIGHT 1998 National Society of Public Accountants. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Many businesses believe that states can only assert their taxing jurisdiction over companies that open offices in the state. This is not true. Are your clients aware that the following corporate activities in a state might create sales/use tax or income/franchise tax liability: permanent employees, traveling salesmen, independent contractors (full-time or part-time), inventory, leased property, or other property? If your clients are found to have a sales/use tax collection duty, many states will hold your client primarily liable for the sales/use tax. If your clients never file a tax return in those states, then the statute of limitations never begins to run.
The ...